6/11 Sime Darby pulls out, announces it will not pursue plan to acquire stake in National Heart Institute. 18:26:07Continued from Part 1 and Part 2
The Barbarian is not at the gates any more, they are inside the compound. In fact, there is the possibility that they have been inside for quite sometime.
Firstly, Sime Darby (SD) would not have been brave to commit to a 16x Price Earning ratio offer, off the cuff. Secondly, they would have snooped heartlessly to find out to know the assets of IJN and known already about IJN’s more than RM400 million reserves. Thirdly, why would EPU repeat verbatim SD’s rationale to offer doctors a better pay package if there had not been many doctors grumbling in private or to patience that they could have made more elsewhere?
If you have read the talk on the grapevines here, it was predicted that EPU would be adamant for the privatisation to go through. Yesterday’s news breaker confirmed most of the rumours circulating.
It is said that SD CEO Dato Zubir Mursyid is at loggerhead with SD Chairman, Tun Musa Hitam over the proposed takeover. If it happened, it only affirms a suspicion that someone inside Government had advised or tipped-off Musa to go for IJN. King Abdullah can hereby ordain Musa as Knight of the Blackheart.
But this is what transpired in EPU-IJN meeting yesterday.
What Transpired Yesterday?
After yesterday’s news breaker, more information surfaced. The information hereinafter is from my source and I do not have to keep repeating my source said this and my source sad that.
The IJN management was represented by the CEO Datuk Mohd Radzif bin Mohd Yunus , Medical Director, Dato’ Seri Dr. Robaayah bte Zambahari, and Representative of IJN’s Professional Advisory Committee Dato' Dr. Mohd Azhari Yakub. EPU was represented by its Director General, Dato Dr Sulaiman Mahboob and accompanied by two quiet chorus “girls”. The Ministry of Finance had two representatives and Minister of Health had one representative.
The IJN people enquired as to why IJN had to be taken over by SD. Why was the announcement made prematurely without proper study done? Usually in a privatisation exercise say IJN, the Ministry of Health would undertake a study and determine if privatisation is the option to serve the nation’s future healthcare needs. Subsequently EPU would evaluate the proposal by MoH and the privatisation approach determined jointly with MoH.
Private sectors are subsequently invited and at this juncture, EPU and MOH would have the figures and details of IJN operation at the tip of their finger. By then they already know what they want and can determine evaluate and negotiate for the best private sector proposal.
What happened yesterday was staggering. More so coming from the DG, who is a respectable economist and his last post is as head of Institiut Integriti Malaysia.
Dr Sulaiman answer was SD wrote a letter and Government agreed with their rationale about rising Doctors pay and raising funding capacity. Its that simple. No study, no research, no due dilligence, and no discussion, but just accept! And we thought Dato Seri Najib said decision was deferred.
He said further that the Minister of Health had agreed. The DG for MOH was not protesting but was keeping quiet in 'agreement".
The two present doctors explained all the doctors had signed a signed press statement on December 19th, 2009 that denied they are seeking for a higher pay package and disagree there is high turnover. They explained the few doctors that weren’t signatory, returned from abroad to endorse. The doctors have unanimously opposed to the takeover.
The IJN CEO explained that IJN had more than RM400 million reserves and funding any expansion is not a problem. The current new wing cost about RM250 million. Through leveraging, IJN can put few more Cardiac Centre. Its current plan can be self funded.
EPU, A Mere Postman
EPU was quiet on this and requested to see the account. They said a due diligence will be made. Shouldn’t all this be done before evaluating any proposal from any party? This looks like a trademark Abdullah Badawi and it usually comewith a flipflop and is not articulated and expalined well. On this one, Dr Sulaiman willingly allowed himself to be a clown.
Subsequently, EPU was asked what SD plan to do with IJN. The answer qualify entry into the Hall of Fame for Stupidity. EPU wants SD’s Healthcare Division to expand and this will enable SD to survive. Who is EPU working for? Is it for SD or for the peoples' well being? Is this to cover for EPU’s monstrous blunder to conform to the wishes of Khazanah to merge of Sime Darby, Guthrie and Golden Hope?
The issue was further pursued. What does SD actually want?
Then, it was revealed that EPU merely act as a go-between and they would refer to the higher authority. Who would be a higher authority than the DG of EPU? That would be the Minister-in-Charge, Tan Sri Amirsham Aziz. The Maybank CEO ended his career in Maybank by donating to Temasek almost a billion Ringgit by allowing his bank to get sucked in to buy Bank Indonesia Internasional from them. The boss to Amirsham would be Abdullah Ahmad Badawi.
EPU’s job is to prepare cabinet paper and they have no idea what SD plan to do. Who plan for it? Is it still the ideas of the boys of Tingkat 4 then? Or another Tingkat 4 wannabee, Omar Ong? But Minister of Finance disagree with the takeover.
When asked who would hold the 49%, they said it will be held by MOF. But is there a guarantee?
EPU acknowledged there could be a serious political backlash on the Government. As civil servants, foremost in their psyche is to serve their elected political masters. By the look of it, they have made up their mind.
Dato Abdul Kadir Jasin commented in Rocky Bru’s blog that “many people and parties stand to make money” in a merger and takeover (M&A) exercise. “So these people love mergers and takeovers. They don't care about welfare and sensitivity.”
Initially, “they will make all kinds of promises. But once a merger or takeover is completed, the first thing they do is rationalisation i.e. cost savings. There's nothing to stop Sime Darby from combining IJN with its existing SJMC and other healthcare units and reduce staff of common user units and departments.”
Sime Darby have no qualms about making profits at the expanse of their own staff. Can we trust Musa Blackheart’s promise that the poor, Government servants, pensioner and most importantly the sick will get treatment?
Something need to be done to ward away this barbarian. The enemy is clear – Abdullah Badawi, Amirsham, Minister of Health, Liow, Musa Hitam and Sime Darby Board of Directors. They are barbaric raiders insensitive with the plight of the common people